Metronic Global: syndicates and receivables

Does the financial markets need market makers and are all market makers syndicates? The answer to that question is probably tangled with a bit of white, black and a whole lot of grey".

"Do we have market makers here in Malaysia? The answer to that officially is a resounding "NO", but the market makers, nevertheless, exist unofficially at least.

Hence recent reports that Bursa Malaysia gave verbal instructions to brokerages to stop their proprietary day traders (PDTs) from trading in Metronic Global Bhd and Ariantec Global Bhd are disturbing.

What Bursa Malaysia did is good, but why the reports on the market regulator engaging with the brokers are disturbing is because, when Bursa Malaysia gives out instructions on some particular securities, it must provide the information to all investors at the same time.

I do believe that is why it has a website. If all investors have the same information, then they will be able to make an informed decision based on facts, and not on reports that can later be denied or confirmed.

Most investors do not read the same newspapers, hence some will gain from those reports, while other will lose out".

I wrote about Metronic Global in the past:

It is a company with quite a few issues, some dating from a long time ago. This is their statement from June 30, 2011 about RM 44.5 million outstanding receivables:

"In relation to the related party receivables due from the Main Contractor Related Party, subject to the finalization of the claim certification by JKR and the subsequent disbursement of payment from the Ministry of Finance, the Company expects the outstanding receivables to be fully recovered through progressive disbursements to be made by the Government of Malaysia not later than 31 December 2011."

But according to its most recent statement, nothing has changed:

Its share price made a rollercoaster ride with the entry of a new investor, Datuk Raymond Chan Boon Siew, buying 33 million shares (5.2%):

Volume is very high, reaching 845 million on March 21, 2012. Remarkable, since the total number of shares is only 635 million.

We have to wait and see how this story will evolve.